Determine the net proceeds to the firm


Problem:

Red Deer Inc. has issued a Euro-medium term note on January 1, 2006 with coupon paid Feburary 1 and August 1. The principal is $1,000,000, the coupon rate is 4% and the note matures August 1, 2007. The yield to maturity on Red Deer Inc.'s other debt is 4.5%. Determine the net proceeds to the firm.

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Finance Basics: Determine the net proceeds to the firm
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